Office of the Legislative Auditor - Financial Audit Division

Overall, the Department of Administration’s internal controls provided reasonable assurance that it properly recorded its financial activity in the state’s accounting system and complied with applicable legal provisions and management’s authorizations.  However, the department did not comply with some applicable legal provisions and management’s authorization for its cooperative purchasing program.

Key Findings:

• The department did not ensure that pharmaceutical manufacturers paid the correct fees to the state for the cooperative purchasing program.
• The department did not reasonably estimate its accounts receivable amount for the cooperative purchasing program.
• The department did not properly limit security access to the state’s accounting system.
• The department did not comply with certain legal requirements for some contracts. 

Audit Period:
July 1, 2002, through June 30, 2005

• Drive to Excellence
• Cooperative Purchasing Program
• Selected Operating Expenditures (payroll, professional and technical contracts, grants)
• Land Sales resulting from 2003 legislation

The Department of Administration is responsible for providing an array of services (including consulting, demography, purchasing, and information technology) for businesses, citizens, and local and state government.

During our audit period, the department collected about $200 million per year and received General Fund appropriations of about $26.5 million per year for its operations.